Question # 1

Production which is produced with a particular combination of factors of production, is called

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Total product

Average product

Marginal product

Positive product

If demand falls more proportionately then that of supply then

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Equilibrium price increases

Equilibrium price decreases

Equilibrium price does not change

Equilibrium quantity increases

If supply of a commodity changes by 10% due to 10% change in its price, then elasticity of supply will be

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Equal to unity

More than unity

Less than unity

Zero

When average product is maximum, marginal product is:

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Positive

Equal to AP

Zero

Negative

Initial utility of a product is:

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Highest

Lowest

Constant

All of these

The rate change in total cost is:

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TR

MC

MR

TC

When marginal utility is positive, total utility:

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Decreases

Increases

Zero

All of them

Cannon,. Pigou and Pareto belonged to school of thought

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Classical

Neo classical

Keynesian

None of these

AR curve is also called:

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Supply curve

Demand curve

Utility curve

Cost curve

Public finance and private finance are of each other

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Opposite

Synonymous

Similar & different

None of three

Elasticity of supply if perishable goods is

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Equal to unity

More than unity

Less than unity

Zero

If due to a very slight decrease in price, demand goes on increasing, elasticity of demand will be

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More than unity

Less than unity

Infinite

Zero

Disadvantages of paper money are

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Unstable value

Possibility of inflation

Possibility of wastage

All the three

If the demand for a commodity is less elastic, then an entrepreneur in order to increase his profit

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Will increase its price

Will decrease its price

Will not change its price

None of these

Dividing total revenue by the sold units of output, is attained

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Average revenue

Marginal revenue

Total revenue

Average cost

Utility attained by all the units of a commodity consumed

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Positive utility

Negative utility

Total utility

Marginal utility

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Principles of Economics Icom Part 1 English Medium Online Test MCQs With Answers

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